Daley Wants 6% Water Rate Hike

City, Suburb Boost Would Pay For $30 Million Sewer Work

A 6 percent water rate increase for city and suburban users of Chicago water was proposed Wednesday by Mayor Richard Daley.

The rate increase would boost the average cost to Chicago homeowners approximately $8 to $12 a year.

In an ordinance submitted to the City Council, Daley said that while the city would raise water rates 6 percent, it would reduce the sewer surcharge on water bills from the current 78 percent to 76 percent, creating an average increase of 4.8 percent on the combined water-sewer bills of Chicago residents.

Even though similar 6 percent water bill increases will be charged to the 95 suburbs which purchase water processed through the Chicago water distribution system, it is likely that suburban governments might boost those rate increases even higher.

Daley echoed a complaint made by several of his mayoral predecessors that suburban governments historically often use city water rate hikes as an excuse to charge their residents even more, blaming the increases on the city of Chicago.

``We`re looking into that,`` said Daley.

Because Chicago encompasses so much of the Lake Michigan lakefront and has a highly developed water purification and distribution system, many landlocked suburbs have found it more economical to buy water directly from Chicago rather than develop their own water systems from Lake Michigan or wells.

Suburbs are charged the same water rates paid by Chicago residents, but the suburbs are responsible for collecting water bills from their residents and for building and maintaining their own water distribution systems and sewer projects.

All 95 suburbs that use Chicago water are in Cook County, but as many as 24 suburbs in Du Page County are expected to link up with the Chicago system by next year, which would result in a major revenue boost to the city.

Chicago city officials estimate the city`s combined water and sewer bill revenues could increase more than $15 million a year with passage of the water rate hike.

Water Department figures indicate that the average bill for nonmetered accounts is $106 a year and would increase to about $112. Average bills for metered accounts, which comprise about 30 percent of the customers, are $134 a year and would increase to $142. Sewer surcharges range from $83 to $85 for nonmetered accounts to $104 to $108 for metered accounts and would increase $2 to $4 a year.

Avis LaVelle, Daley`s press secretary, said the rate increase was needed to raise money to finance a planned $30 million sewer improvement bond issue and to cover the costs of increased electricity and gas expenses needed to run the water system.

In the past, Daley said, water rate increases have only been imposed after several-year lags, resulting in big boosts when they came. For instance, he said, the last rate increase was 16 percent in 1989, and, in 1981, they jumped 51 percent.

To avoid such big jumps in the future, the mayor said, he plans to impose small water and sewer rate increases each year, building up revenues as they are needed.

The mayor said he hopes the council will quickly approve his proposal so the city can begin collecting the higher fees as of July 1.

Some early suburban reaction to Daley`s proposal was favorable.

Gilbert Greenwood, executive director of the Northwest Suburban Municipal Joint Action Water Agency, which serves seven suburbs, said, ``We get good service from the city.`` Speaking of the seven suburbs belonging to his agency, he said, ``The last time the rate went up a couple years ago, they felt it was justified.``

Oak Lawn Mayor Ernest Kolb said, ``I can understand that their

(Chicago`s) costs keep rising and they want to make upgrades in their system.`` He said Oak Lawn has been extremely pleased with water quality and service from Chicago.